{"id":14445,"date":"2026-10-14T00:58:01","date_gmt":"2026-10-14T00:58:01","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=14445"},"modified":"2026-10-14T00:58:01","modified_gmt":"2026-10-14T00:58:01","slug":"metaplanets-bitcoin-strategy-faces-a-380-million-test","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=14445","title":{"rendered":"Metaplanet’s Bitcoin strategy faces a $380 million test"},"content":{"rendered":"

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Metaplanet plans to raise $329 million to refinance Bitcoin-backed loans and fund share buybacks after its stock has declined 90% from its peak.<\/p>\n

On Oct. 13, the Japanese Bitcoin treasury company announced plans to issue \u00a552 billion ($329 million) in unsecured, zero-coupon Euro-yen convertible bonds due in 2031.<\/p>\n

Expected to close on Oct. 29, the offering will target investors primarily in Europe and Asia, with the bonds slated for listing on the Singapore Exchange.<\/p>\n

The financing would\u00a0let\u00a0Metaplanet\u00a0replace part of its interest-bearing,\u00a0Bitcoin-collateralized debt with borrowing that requires<\/span>\u00a0no regular interest payments. The company expects the restructuring to free up pledged Bitcoin, reduce financing costs and improve financial flexibility without selling its cryptocurrency holdings.<\/p>\n

Bitcoin-backed debt pressures Metaplanet’s capital strategy<\/h2>\n

Metaplanet’s refinancing comes as its reliance on Bitcoin-backed borrowing has exceeded the company’s internal risk limits.<\/p>\n

As of Sept. 30, the company had approximately $649.5 million outstanding under an $800 million credit facility secured by its Bitcoin holdings.<\/p>\n

That represented 17.7% of the net asset value of its Bitcoin reserves, well above management’s guideline to keep the ratio below 10%.<\/p>\n

Metaplanet, which held 44,000 BTC at the end of September, acknowledged that further declines in Bitcoin prices could increase the borrowing ratio by reducing the value of its cryptocurrency holdings.<\/p>\n

To address this exposure, the company plans to allocate about \u00a523.6 billion ($149 million) of the new bond proceeds to repay part of its outstanding loans in November.<\/p>\n

The repayment would reduce borrowing under the facility to approximately $500.5 million. Based on September’s reported asset values, that would lower the borrowing ratio to roughly 13.6%, assuming Bitcoin’s value and other conditions remained unchanged.<\/p>\n

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Related Reading<\/span><\/p>\n

Metaplanet\u2019s Bitcoin boom quietly turned a 46 million-share executive pay plan into a 319 million-share windfall<\/h3>\n<\/p>\n

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However, that would still leave Metaplanet above its preferred leverage threshold, suggesting that the company remains exposed to further declines in Bitcoin prices.<\/p>\n

Metaplanet acknowledged that replacing its existing Bitcoin-backed loans with convertible bonds would not immediately reduce its total liabilities, even as it lowers interest expenses and reliance on pledged collateral.<\/p>\n

Although the new bonds mature in 2031, investors can demand repayment after three years, potentially forcing the company to refinance earlier than the stated maturity.<\/p>\n